S.Korea to more than triple mineral investments

SEOUL Jan 27 (Reuters) - South Korea said on Thursday local
firms were likely to more than triple investment in developing
minerals this year, as they intensify the search for rare metals
in regions such as Central and South America and Africa.

About 25 South Korean firms are expected to increase 2011
investment more than threefold to $7 billion in overseas mineral
resources, compared with $2.2 billion estimated for the previous
year, the ministry of knowledge economy said in a statement.

Of the total, the private sector's $4.4 billion worth in
spending would exceed that of the public sector.

The ministry said 39 percent of total investment would be
spent on coal, as large-scale spending by POSCO (005490.KS: Quote) and
KEPCO (015760.KS: Quote) continues.

Asia's fourth-largest economy will also boost investment in
rare metals such as lithium and rare earths, which would account
for 9 percent.

The country seeks to double self-sufficiency rates for "new
strategic minerals" such as rare earths and lithium, to 10
percent in 2011 from 5.5 percent in 2010. [ID:nL3E6NF0X1]
(Reporting by Ju-min Park; Editing by Jacqueline Wong)